Oil Prices Plummet 5% as US and Iran Pause Strikes
Oil prices plummeted 5% on Monday after the US and Iran paused their strikes over the weekend, sparking hopes of a diplomatic solution that would de-escalate the conflict in the Strait of Hormuz.
Brent crude futures fell $4.89 to $91.89 per barrel, while U.S. West Texas Intermediate crude declined by $4.67 to $84.64.
The pause in attacks came after two weeks of attacks, which had reduced oil shipments via the Strait of Hormuz and hindered exports from Saudi Arabia through the Bab el-Mandeb strait to Asia.
US Ambassador Mike Waltz stated that President Donald Trump had decided to halt US attacks to allow more time for diplomacy.
Analysts believe a return to the 14-point MOU with clarity around control of the Strait of Hormuz would be a solid starting point for a diplomatic path.